Risk management

The purpose of the risk management arrangements is to prevent losses due to payment defaults by registered market participants. All balance group representatives (BGRs) must post base and variable collateral, graduated according to their balancing energy procurement/sales. The variable collateral covers the risk of a payment default by the BGR itself. The amount of the collateral required depends on the results of the credit check performed by Oesterreichische Kontrollbank AG (OeKB) (initially, during the registration procedure and thereafter on an annual basis).
The base collateral covers the risk both of payment default by the BGR itself and other BGRs. It acts as collective collateral (by way of joint and several liability) to cover exposure to default risks that are not covered by the collateral posted by defaulting market participants.

This dual approach to collateral is aimed at providing maximum safeguards against the risk of payment defaults by market participants.

We regularly review the system and make improvements where necessary.